Charles Schwab 2024: Low-Cost Global Brokerage Unveiled

Is Charles Schwab Safe to Trade With?

Charles Schwab is one of the largest brokers in the US and operates internationally. It is regulated by the Financial Industry Regulatory Authority (FINRA) and is under the watch of the Securities and Exchange Commission (SEC).

FINRA’s BrokerCheck confirms Schwab is regulated to offer trading (under FINRA), and investment advisory and investment management services (under SEC) in the US.

Investors are also covered under the Securities Investor Protection Corporation (SIPC), up to $500,000 your funds or securities held in Charles Schwab ever become inaccessible.

Charles Schwab Trading Fees and Other Fees

Charles Schwab brokerage offers straightforward low-cost pricing for stocks and options trades. Here is an overview of the commissions and fees to expect:

• $0 commissions on U.S. stocks and exchange-traded funds (ETFs).
• $0 commissions on options trading, but there is a $0.65/contract fee.
• $0 mutual fund commissions on over a thousand mutual funds ($7.45 for other mutual funds).
• $2.25 per futures contract or futures options contract.
• $6.95 over-the-counter (OTC) for Canadian stock trades.

There are additional fees if you place trades by calling the broker (broker-assisted trades).

There are no maintenance fees on accounts and there is no account minimum.

While there are no commissions, there are still costs for trading stocks imposed by regulators.

• Regulatory fee: $8 per $1 million in trade value (sell transactions). Prorated based on the amount sold.
• Trading Activity fee: $0.000145 per share on equities (sell transactions) and $0.00244 per option when you sell.

There may be additional fees that Charles Schwab says they can pass along to you, the user, at their discretion based on whether they incur a fee related to the transaction.

If you want to use Charles Schwab wealth advisory services, there are account minimums and yearly fees are deducted from your assets under advisory or management.

The minimum investment starts at $5,000 and increases from there based on the service selected. Basic portfolio construction (Schwab Intelligent Portfolios), using ETF trades, can be free. To have a financial advisor manage your money for you will cost between 0.4% and 1% of your assets per year.

Charles Schwab Trading Product Offerings

Charles Schwab offers access to stocks, ETFs, options, futures, futures options, mutual funds, and bonds (including treasuries).

Stocks and ETFs can be traded on U.S. exchanges or international exchanges. You can trade all commonly listed stocks including Apple (AAPL), Tesla (TSLA), and top-rated investment stocks. International stocks include stocks from Canada and other global exchanges.

Options, futures, futures options, and mutual funds are from U.S. exchanges or sources.

You are able to trade futures on the S&P 500, gold, oil, and agricultural commodities. You can also trade options on stocks, ETFs, and indices. Bonds include treasuries, certificates of deposit, corporate/municipal/government bonds, and foreign bonds.

Charles Schwab does not offer forex trading or access to cryptocurrency markets.

Charles Schwab Deposit and Withdrawal Methods

With a Charles Schwab brokerage account, you can deposit and withdraw in several ways.

• Electronic funds transfer (EFT)
• Auto Deposit
• Transfer cash or securities from a different broker
• Wire transfer
• Check deposit

You withdraw in the same ways, except auto deposit isn’t available.

There is no minimum deposit amount or account minimums.

Charles Schwab Account Types

Charles Schwab offers a number of account types based on what you are looking for.

Most investors are looking for a self-directed brokerage account. This is an account where you can trade the financial markets using your own discretion.

Brokerage accounts available include:

• Individual account – only one name is on the account
• Joint account – an account shared by two or more individuals

If you are looking to invest for retirement, or are already in retirement, Charles Schwab also offers IRA accounts.

• Traditional IRA account – contributions are tax-deductible, but withdrawals are taxed
• Roth IRA account – contributions are not tax-deductible, but withdrawals are not taxed
• Rollover IRA
• Inheritance Beneficiary IRA – for those who inherit an IRA
• Custodian/Minor IRA – for those under the age of 18
• Small Business IRA Solutions

Going to college, or want to save for your child’s education? Charles Schwab offers accounts for that too.

• 529 Education Savings Plan – a tax-advantaged education saving plan
• Education Savings Account – tax-deferred education saving account
• Custodial Account – add financial gifts to a minor

Does your employer offer a retirement plan, but you want to be able to manage some or all of these funds yourself?

• Personal Choice Retirement Account – resides within your employed sponsored retirement account and allows you to trade a wider range of investments.

Own a small business, and want to set up retirement accounts, investment accounts for your business, or money market accounts? Schwab offers those as well.

• Small Business Retirement Plans – set up IRAs or 401(k)s
• Organization Account – a business trading account
• Money Market – access money markets and certificates of deposit (CDs)

Charles Schwab Trading Platforms Review

Charles Schwab offers three trading platforms, and all of them provide the tools that most traders need.

• StreetSmart Edge – streaming quotes and charts, advanced analytics and charting, available either by download or online.
• Web Trading – a simpler online trading platform offering select trading research tools and research. Less customizable.
• Mobile Trading App – trade on the go from your mobile device.

Before looking at each platform in more detail, all offer quality trade execution. Market orders are executed within 0.04 seconds on average, and 96.2% of orders see price improvement relative to the best bid or offer price at the time.

StreetSmart Edge Review

StreetSmart Edge is an advanced trading platform that allows you to customize the platform how you like. You can create multiple layouts, include tools you want, and exclude what you don’t.

With StreetSmart Edge, you can get streaming quotes – including Level II data – so you can see all the bids and offers in various assets at different prices.

Add indicators to charts, and customize the look for those charts. Access news feeds, watch news, and create your own watchlists and alerts. Trades are easy to place with the all-in-one trade ticket. Order entries can also be customized.

You can also access stock screeners and fundamental data on stocks to help you fine-tune your trading decisions.

If you are an options trader, use Ideas Hub to find trades, view options chains and Greeks, see trade potential using the Trade and Probability calculator, and easily deploy multi-leg options orders.

Charles Schwab Web Trading Review

The Web Trading platform is for people looking for a simpler trading experience. It is not as customizable and it is accessible online, meaning no download is required. It offers most of the same tools as StreetSmart but in a more stream-line package to appeal to a wide array of investors.

You have access to real-time market data and charts (less customizable), stock screeners, watchlists, news, and fundamental data on stocks. Use the All-in-one trade ticket to quickly enter a simple stock trade or an advanced multi-leg options trade.

Overall, the Web Trader is excellent if you want a quick trading experience, and want to access your account from anywhere in the world. Just log into your account through the Schwab website.

Charles Schwab Mobile App Review

The Charles Schwab app allows you to monitor your investments and make trades anywhere through your smartphone. It is suitable for both experienced investors and beginner investors.

You can monitor positions, and access basic charting, news, and real-time prices.  Execute simple or advanced trades by clicking the “Trade” icon at the bottom of the screen.

Overall, the app is easy to navigate. You can see your positions via the Summary tab, current orders via the Order Status, place trades via Trade, and access market information via Markets, all located at the bottom of the screen (shown above).

Charles Schwab Support and Trading Education

There are a number of ways to get in contact with Schwab, and they offer various phone numbers depending on what you need. If you are a brokerage client, contact them at 800-435-4000.

In addition to phone support, Schwab also offers online chat. Click Contact Us on the website, as shown above, and then click on “More ways to contact Schwab”.

It also gives you the option to make an appointment at a local Charles Schwab location.

Schwab offers an extensive list of educational materials covering the basics of trading various markets. It also offers in-house and external research within the trading platform and through the website. This includes podcasts, a live daily show, and a magazine in addition to basic information articles.

Click on the Learn link on the Schwab website to browse their educational materials selection.

Pros and Cons

Final Thoughts on Charles Schwab

Charles Schwab is a long-standing broker in the US. It is highly regulated and safe to trade with. It has a quality trading platform regardless of whether you’re an advanced trader or looking to place simple periodic trades. Trade on the go or from a customizable downloadable platform on your desktop.

Users can use Charles Schwab to trade stocks, options, ETFs, futures, mutual funds, and bonds. In almost all cases, there are no commissions, but there are some small fees. Open a wide array of account types depending on your goals. Overall, Charles Schwab is an excellent low-cost broker available to US residents as well as international traders.

The one major downside is that they don’t offer forex or crypto trading. See our crypto broker reviews if you want to trade Bitcoin or other crypto assets.

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